Since The Merge, Ethereum has significantly lower on-chain fees. However, the combined transaction volume of Arbitrum and Optimism on the layer 2 (L2) chain exceeds the on-chain transaction volume of Ethereum. On Saturday, January 14, 2023, Ethereum processed his 1.1 million on-chain transactions, while Arbitrum and Optimism combined transactions reached 1.32 million on the same day.
The Rise of L2 Scaling Solutions Arbitration and Optimism
On-chain transaction fees have decreased significantly since the first week of August 2022, and on September 15, 2022, the blockchain will transition from a Proof of Work (PoW) blockchain to a Proof of Stake (PoS) network. Since we moved, it’s gone down even more. Data from etherscan.io’s gas tracker shows that the cost of the highest priority on-chain Ether transaction was an estimated $0.75 or 23 gwei at 5pm Eastern time on Sunday.
According to data from Sunday, January 15, 2023, an average Arbitrum transaction costs about $0.101 per transfer, while an Optimism transaction costs $0.1410 per transfer. L2 scaling solutions are becoming more and more popular in 2020 and beyond, with options like Polygon Hermez, Zksync, Boba, Starknet in addition to Optimism and Arbitrum.
These solutions enable faster and cheaper transactions by offloading computation from the main blockchain network (Ethereum) or Layer 1 (L1). Arbitrum and Optimism transactions are periodically “rolled up” and recorded in Ethereum using the Optimistic Rollup or Optimistic Virtual Machine. Statistics from Dune Analytics show that both L2 networks, Arbitrum and Optimism, are seeing significant increases in daily transactions.
For example, Optimism recorded 737,191 trades on January 14th, while Arbitrum got 586,745 trades on the same day. Since January 10, 2023, the combined number of transactions on Arbitrum and Optimism has surpassed the number of direct Ethereum on-chain transfers. For example, on January 10th, both L2 scaling networks had about 1.12 million total transactions, while Ethereum handled his 1.06 million on-chain transfers.
As of January 14, 2023, data from Dune Analytics showed that both L2 networks had about 1.32 million total transactions, compared to 1.1 million transactions settled on the Ethereum chain. Ethereum processes a significant number of transactions per day compared to most blockchains. Since June 17, 2020, Ethereum typically handles over 1 million transactions per day. However, there are several other crypto networks that settle more transactions than Ethereum, such as XRP and Polygon.
On January 14th, Polygon recorded 3.1 million transactions and XRP closed 1.25 million transactions that day. L2 chains Arbitrum and Optimism themselves haven’t surpassed his daily transaction numbers for Ethereum, XRP and Polygon, but they’ve increased significantly over the past 12 months.
For example, on January 15, 2022, Ethereum processed 1.17 million transactions that day, while Arbitrum processed 21,734 transfers per day and Optimism processed 30,430 transactions per day. . The data shows that Arbitrum has seen a 2,599% increase in transactions per day over the last 12 months, and L2 scaling solution Optimism has seen a 2,322% increase in transfers per day since January 2022.
What impact do you think L2 scaling solutions will have on the future of blockchain technology and its adoption? Let us know your thoughts in the comments section below.
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